What are structured derivatives?
Investment in structured derivatives provides the investor funds to participate in the performance of various basic classes of assets. Shares, commodities and indices are several classes of assets that can be considered basic assets. Structured derivatives are financial contracts compiled to create a specific investment strategy. All structured derivatives are not available in all countries. Derivatives of free dealers (OTC) are unregulated and are not available in countries that require regulation.
Structured derivatives are usually pre -packed investments. The profit or loss of these investments is specifically tied to the performance of basic assets. Investment banks and their associated entities pack these derivatives for clients and fees for this service.
Structured products are very similar to possibilities and may include types of options. A continuous risk is similar to trading in options. The investor who trades structured derivatives should be approved by FPEBO trading in options. These prodUkta is extremely complex and lacks liquidity to be considered a trading product. The complexity of the product makes it difficult to predict performance in relation to simple ownership of basic assets or trading in simple assets. This objective can achieve an investment bank for a fee. Fee fees can affect investment performance. These investments may include certain tax benefits, increased return and reduced volatility depending on the type of structure.
The term used for creating these products is "financial engineering". It is simply a combination of space, possibilities, futures or other financial positions. The aim of any financial situation is to mitigate the risk of WHILE provides the opportunity to profit. Structured derivatives are a complicated way to achieve this goal. In fact, an intimate investor could build an investment product to meet the necessary requirements.
securitized derivatives are a form of structured derivatives. These are essentially associated receivables of contractual debt. Examples of this are securities supported by mortgages and securities supported by asset such as car loans. Investment banks pack these individual assets in a form referred to as a secured debt obligation.
The national and international derivative association was organized in an effort to create standardized contracts and legal policy. These associations are found in many countries around the world. A wide range of rules and regulations has been explored to improve and improve derivative markets.